Finance Minister Nirmala Sitharaman announced a cut on customs duty on precious metals like gold, silver, and platinum in the Union Budget 2024 presented on July 23. This will bring down the prices of jewellery made with such metals
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How much has basic custom duty (BCD) on precious metals ben brought down in the Union BUdget 2024?
The import duty on gold and silver is down to 6% now, compared to 15% earlier. Platinum import duty is now down to 6.4% from 15.4% earlier.
How much will gold, silver, and platinum prices be from now on?
24 carat gold is going to get cheaper by ₹2,800 as the prices are currently ₹72,700 per 10 grams, according to an Economic Times report, which adds that silver will get cheaper by ₹1,650 at ₹87,350 per kg and platinum is expected to cost ₹28,940 per 10 grams.
Several manufacturers had already begun passing on the Budget duty cuts to customers, with silver prices coming down, a Times of India report quoted Surat-based silver articles maker Mahesh Rungta, as saying.
What will be the impact of the new duty cuts?
“The reduction in import duty on gold not only relieves consumers who have eagerly awaited this announcement but is also expected to boost gold demand in the country and create jobs for artisans,” the Economic Times quoted MP Ahammed, Chairman, Malabar Gold & Diamonds as saying. “High import duty often leads to increased smuggling of gold through illegal routes, which hampers the growth of the organized retail gold trade and results in revenue losses for the government.”
The duty cut is also expected to reduce smuggling of gold, he added
How have did the stock market react to the announcement?
Shares of gold and jewellery companies have been in the green since the announcement.
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Kalyan Jewellers India Ltd is up 5.15%, trading at ₹581.30 on the BSE, Tribhovandas Bhimhji Zaveri Ltd is up 2.03%, trading at ₹158.45, Titan Company Limited Ltd is up 1.24%, trading at ₹3,511.15, Rajesh Exports Ltd is up 2.47%, trading at ₹324.15 and Senco Gold Ltd is up 0.23%, trading at ₹989.85.